I agree with you, but just want to clarify for others who don't understand why the parent misused the term AI effect. AI effect is more related to the fact that once you understand the trick behind the magic you no longer believe the task to require intelligence, even though it is still able to do an amazing task that wasn't possible before and had for centuries been thought off as requiring intelligence and something that only humans could do.
That the current AI techniques couldn't work for every imaginable task, and that people believed they might isn't a case of the AI effect. That's just hype, and possibly another coming case of the AI freeze.
The AI effect will be how in 5 or 10 years, CS students will learn neural nets as part of their first or second year curriculum and the whole machinery will be behind a single API to some Apache library. And someone will then use that to some cool effect and say they're doing AI, and others will laugh and say, you're not doing AI, you just used a neural net to learn weights from a big data set silly, that's not AI.
This effect happens for every task, even when AI is not involved. Until you understand how, someone doing something you can't comprehend will have you think they are a genius and maybe of a higher IQ and probably very intelligent. But learn the "how" for yourself and it'll stop being so impressive. Rubik's cube is a good example of this. Once you realize there's a trick to it, it stops being as impressive.
Some relevant quotes from the wikipedia article:
> AI effect is: As soon as AI successfully solves a problem, the problem is no longer a part of AI.
> Software and algorithms developed by AI researchers are now integrated into many applications throughout the world, without really being called AI.
> AI advances are not trumpeted as artificial intelligence so much these days, but are often seen as advances in some other field
> practical AI successes, computational programs that actually achieved intelligent behavior, were soon assimilated into whatever application domain they were found to be useful in, and became silent partners alongside other problem-solving approaches, which left AI researchers to deal only with the "failures", the tough nuts that couldn't yet be cracked
> The great practical benefits of AI applications and even the existence of AI in many software products go largely unnoticed by many despite the already widespread use of AI techniques in software. This is the AI effect. Many marketing people don't use the term 'artificial intelligence' even when their company's products rely on some AI techniques. Why not?
https://en.m.wikipedia.org/wiki/AI_effect